AL delivery of all 875 ULE buses to DTC by February next

The new bus body facility at Ashok Leyland’s Alwar plant is abuzz with the production of ultra low entry (ULE) buses ordered by the Delhi Transport Corporation (DTC). As per the schedule mutually agreed upon, supplies against the total order of 875 buses will be completed in February 2010.

This facility will also produce the 200 ULE buses ordered by the State Transport Undertakings of Rajasthan, Maharashtra and Andhra Pradesh under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

“The buses we are building for DTC are globally benchmarked, definitely unique for the Indian roads, and DTC can be proud of ushering in a world class product for urban transportation in India,” said Mr. Rajive Saharia, Executive Director - Marketing, Ashok Leyland, at a media briefing.

The ULE buses, with a floor height of 390 mm, have a step-less entry. These 12 metre-long buses have an integral all-steel body, with 35-seats in 2x2 configuration. It will be powered by a 230 hp turbo-charged, inter-cooled engine and fitted with automatic transmission. The use of Multiplex wiring is a unique feature influenced by considerable electronics employed in the bus.

Safety, passenger ride comfort and convenience as well as easy driveability have been key considerations in the design and manufacture of the buses.

The bus is equipped with electro-pneumatically controlled doors with lock sensors so that it can be operated by the driver. The doors will not open when the bus is in motion. An anti-skid vinyl flooring with silicon impregnation, conveniently located grab bars, sleeved stanchions and a stop request buzzer are some of the other safety features. The bus is fitted with a speed limiting device and an efficient braking system.

Apart from the low floor and wide doors that afford easy entry and exit, passenger comfort and convenience are further addressed through air suspensions for jerk-free rides, complemented by modern, comfortable roto-moulded seats, air-condition and electronic destination boards. Equipped with laptop connections and a music system, the bus is also disabled-friendly.

The new production facilities are set across approximately 20,000 square metres in Ashok Leyland’s Alwar plant, which had spearheaded induction of CNG technology in Delhi buses, with a supply of over 3,500 CNG bus chassis till date. The bus building plant is equipped with ultra-modern machinery globally benchmarked.These include the cubic framing fixture, hydraulic automated paneling, conveyors for automation, body lifting mechanisms, paint booths and a shower testing facility.

The stretch paneling process is the first of its kind in India. The steel and aluminum panels in the bus are stretched to their maximum elongation limits to ensure a smooth, dent- and wrinkle-free surface.

New acquisitions give further fillip to TRF’s growth

The last year witnessed immense growth activity at TRF. This was mainly driven by the impetus given to it by the Company’s investment in York and its own expansion project at the Jamshedpur Works. The roll out of its growth plans has resulted in York setting up base in India and 51% shareholding in Adithya Automotive Applications Private Limited, an automotive applications unit in Lucknow. In yet another move, intended to accelerate the company’s growth and achieve greater synergy and capability to manufacture trailers, TRF acquired a 51 per cent stake in Dutch Lanka Trailer Manufacturers Limited (DLT), Sri Lanka for US$8.67 million in the first phase. It has also signed a call & Put Option Agreement for acquisition of the balance 49 % equity shares for a consideration of US$8.33 million.

This acquisition gives TRF access to three more subsidiaries of DLT in Sri Lanka, Oman and a JV with Tata International in Pune. DLT exports trailers to over 30 countries.

TRF’s investments and growth forays are aimed at achieving its Vision of realising a turnover of Rs. 2500 crores by the year 2013. The Company recorded a consolidated turnover of Rs. 723 crores in 2008-09, an increase of 62% over the previous year.

The man driving all these initatives at TRF is Mr. Sudhir Deoras, Managing Director. He is a leader who believes in reaching out to people and making them believe in their potential and then, artfully tapping their zest to perform. During one of his early interactions with the workers on the shop floor, over two years ago, he shared with the workers what he had been told was the expanded version of TRF - “Tata Retired Force”. Most workers laughed in agreement allowing him to disarm them. He then inspired them to change this perception, by sharing his analysis of the true potential of its people and the company. With his enthusiasm he injected in them the will to co-create a Vision to grow five times in five years to become a Rs. 2,500 crore company and ignited their minds to excel.

Ask Mr. Deoras about the exponential path taken by the once small Jamshedpur based - bulk equipment manufacturer and he is dismissive of his role. But the glint in his eye sharpens when he talks of the pride workers have in their “MNC” organisation today.

In a recent interview, Mr. Deoras spoke about this journey and much more.

GROWTH & DIVERSIFICATION

Question : What was the “big picture” that you had in mind for TRF when you assumed charge of the Company?

Answer: Since I had been away from the Tata Steel family for over 10 years, during my stint with Tata International, I was unfamiliar with TRF’s progress. On joining, I realised that we had a relatively small top-line and also a small bottomline. I strongly felt that, if we continued, as we had in the past, we would not only lose relevance and become marginalised in the industry but would also lose relevance within the Tata family itself, where leading players had grown enormously during the same length of time. Our future plan was not exciting enough and with time we would either be consumed by competition or cease to exist.

If steel plants were not being built, the power sector was seeing rapid growth. We had to belief in ourselves. We began with a new sense of identity, which was to define TRF to represent Trust, Respect and Fellowship rather than “Tata Retired Force!”

Then we got together at a huge strategy session, where senior management, youngsters, officers from all divisions got together and we began “flying the kites”. We recognised that we could deploy the same resource and yet undertake larger projects. In time we did that and we also celebrated every large order because it made us realise we could better our best and believe in the first component of our Vision.

The other aspect of our “big picture” or Vision was to question if we could diversify. We had confined ourselves to supplying bulk equipment to steel plants, power plants and mining industry; businesses which were cyclic in nature and were nor growing.

In the past, the Board had discussed diversification and we put that idea in motion by proposing that we diversify into another engineering product with a different cycle time. That is how, we zeroed in on the automobile application industry, enabling us to realise the second component of our Vision. We asked TSMG to conduct a study and their projection got us very interested. York fitted the product we were interested in. Initially York was reluctant because they had no plans to sell but our argument that India was where growth would take place , finally clinched the deal.

RATIONALE FOR M&A

Q: How do the new partnerships fit in with TRF’s growth strategy?

A: Our core competencies were in designing, engineering and fabrication for the steel industry, our principal customer, whose business is cyclical. Typically, their orders have a cycle time of 2-3 years. As of now, steel plants are not coming up and this is where the automobile industry, a business with an entirely different business cycle, will drive growth for us. York is a company which is well known for the quality of its products which are trailer axles, suspensions, etc. It was an attractive proposition as we knew that with better road infrastructure, the trailer business in India would certainly become big. After acquiring a managing stake in York, Singapore, we started York India. Once the trailer undergears were in place, we looked at forward integration and took the decision that we should manufacture trailers as well.

A greenfield project was explored, however, the time required to set up the project made the balance tilt in favour of an acquisition. Again we knew of Dutch Lanka Trailers, which has been working with the Tata Group for a while. Tata Motors certified the quality of their trailers. We went to DLT, with the same logic as we did with York that, if you do not grow and do not have a presence in India you will soon be marginalized. Since they too wanted to benefit from the potential growth and valuation, we agreed to take only 51% to gain management control, with an agreement that we will buy 49% later.

BUSINESS PRESENCE

Q: In your opinion what has been the biggest change in business outlook?

A: Our Vision was to grow in the material management business and to diversify into a new business. While our capabilities and the size of our existing businesses has doubled, our entry in Automotive Application has allowed us to hedge against cyclical ups and downs in our current business. In two years it has given us an international footprint and opened up a huge growth potential. We have also a new subsidiary in India - Aditya Automotive Applications - which will manufacture a whole new range of fixed body auto applications. In the next five years the Automotive Application business alone might touch Rs 2500 crores.

CHANGE MANAGEMENT

Q: How do you believe that the organisation is being prepared for change?

A: We have worked on several fronts, apart from the size of our projects and business diversification. At the Jamshedpur Works, we have prepared ourselves by taking the decision of upgrading machines, adding new equipment, expanding our fabrication bays and also acquiring an additional five acres of land . For all three divisions, we have added new Design Software and have hired consultants to help us migrate to a more advanced version of SAP.

On the people front, we have done a lot ofwork as well. There was a time when entire departments were being poached but not so today. We have corrected our remunerations after a benchmarking exercise, to retain talented people. The excitement created by us has encouraged lateral entrants from the market to join us.

At the entry level, we changed our hiring policy as well. We decided to hire graduate engineers only from NIITs, because we believe we must have people with the right skills. Again, entry level salaries were enhanced after benchmarking. We offered them challenging tasks, training and tools such as software and computers. The result is that we are today a Day I company in all these institutes. Weare also hiring students of the General Management Programme from XLRI. 21 engineering graduates and four management graduates have joined us recently.

To strengthen our design capabilities we now recruit students ofM Tech in Design from NIIT and IIT, Guwahati. In Finance as well it is these whiz kids who provide the top management with the analysis and inputs in areas such as mergers and acquisitions. We are implementing the Theory of Constraints and have their consultants working with us. All this costs money but we are sure we will make much more money as we can already see that it is changing the way projects are being managed. If we arc to handle huge projects we cannot afford delays. I fmnly believe if we do not prepare our people we cannot fulfill our dreams and Vision . There is already a culture change happening across the organisation.
INTEGRATION

Q: With different companies under the TRF umbrella how do you intend to achieve integration or synergy?

A: We would like synergy in design and procurement to begin with. None of the organisations are competitors, therefore, by working together we can create value. There are some extremely competent individuals in all organisations and we should utilise their expertise.A good Design Centre, for instance in Pune, India, would benefit the entire TRF Group.

In Procurement, we are currently studying the possibilities of combined buying.

PERFORMANCE IMPROVEMENTS

Q: Where are the critical constraints for future performance improvements?

A: We are addressing performance improvements in three areas . Firstly, in BMHE, we are essentially producing the same products, with the same materials as we did years ago, even though the steel making process is vastly different today.

Therefore we have taken the help of the top metallurgists and designers in the country to look at ways to reduce the cost of equipment, similar to the weight.

Secondly, the manner in which clients view projects has changed dramatically. No longer does India believe that it requires 10 years to set up a power plant. Clients want projects done in time and we are building our project capability to manage big projects, through the implementation of Theory of Constraints.

Thirdly, as explained earlier we will continuously improve the capabilities of our people by picking the right material, offering them challenging tasks, training and engaging them in challenging work.

BRAND BUILDING

Q: Given the speed and range of the transformation in TRF what advice do you have for employees on the shop floor to manage it and to understand how they can contribute?

A: Workers today definitely have a sense of pride in being a part ofTRF. They are part ofthe decision making process, because everything that is happening is due to their hard work here. We have taken a number of initiatives through

Small Group Activities and Quality Circles. We are constantly building excitement around them by going out to the shopfloor to meet the teams which have done well. As a result others get interested and work towards participating in these activities.

We have also restarted induction of youngsters in the shop floor and motivated them with the belief that they will be running the Company in the future. We are considering a scheme to upgrade senior, experienced and qualified workers with the hope that such a move will galvanise other workers to aspire for higher positions and responsibilities. The Wage

Agreement with workers has been our best-ever. I must say that the Union has been extremely supportive, constantly tell ing the workers that , all this has been made possible because the Company is doing well.

The annual bonus scheme for officers has made the rules of the game very clear. Higher profitability will translate into a higher bonus. The project team received unheard of bonuses.

But I am glad others are not demotivated because they have told me that they intend to prove their worth!

LOOKING AHEAD

Q: With private sector sentiments down, do you think the Government’s infrastructure outlay will benefit TRF?

A: All the areas of business we are in have to grow. Roads will be built so trailers will be needed, power plants will happen , the country needs ports and the steel industry will grow. With all this growth we will certainly become big. The MD’s job is to find the right opportunity and then the right people to run it. I am looking for the opportunities from this growth.

For instance, in BMHE, technology will change and one has to anticipate what will come. In the projects we have all the requisite expertise except Civil Engineering, even though we design everything.

Q: With this growth expected, how will TRF contribute to making it sustainable?

A: In equipment man ufact uring we are looking at total cost of ownership of the customer. Therefore, we are working at reducing the energy cost of running the machinery. We are also examining new technologies for greater efficiency and weight reduction of material to reduce the overall footprint of our products. While exploring new technologies and new products we are actively considering equipment such as pipe conveyors, which will significantly reduce dust and environment pollution at the work site of customers. At our Jamshedpur plant and TRF colony we have invested in rainwater harvesting and undertaken plantation activity to address both water consumption and greening of TRF.

- Courtesy: Speed@TRF

Bajaj Auto launches RE600 cargo vehicle

Bajaj Auto Ltd. (BAL), the world’s largest manufacturer of three-wheelers, has launched the RE600 cargo vehicle designed by its R&D team to deliver the highest mileage and lowest operating costs in the commercial three-wheeler category.

The RE600 offers the best-in-class mileage which is at least 5 km per litre of diesel more than other vehicles. It has a robust, solid construction and comes at an attractive price point which makes for the lowest cost of ownership.

The vehicle is specially conceived and developed for cargo movement in congested cities and towns. It has the lowest turning radius for high manoeuvrability even on narrow roads, twin front suspension and a spacious cabin for comfortable long drive, high torque for quick pick-up even with heavy loads and has ease of frequent and quick start-stop cycles, making it the best suited vehicle for in-city operations. It is thus a new category in the small commercial vehicle segment, and is priced at Rs. 1,03,686, ex-showroom Pune.

Mr. R.C. Maheshwari, CEO, Commercial Vehicles, Bajaj Auto Ltd., said: “With the launch of this vehicle, we are meeting the needs of those customers with payloads upto 600 kg but are not willing to pay high operating and fixed costs. The RE 600 would not only match but exceed the needs of those customers who rely on in-city transportation as a major need for their last leg distribution to retailers and end users. As the vehicle is attractively priced, it also has the ability to create self employment opportunities. We are confident that with this vehicle there is going to be realignment of categories in the small commercial vehicle segment.”

Bajaj Auto vehicles have always been known for their better fuel efficiency, reliability and durability. Its R&D has developed some of the most efficient drivelines in the world with pioneering technological breakthroughs. This has resulted in the Bajaj RE three-wheelers command the respect of 36 lakh customers in India, he added.

The RE 600 is being launched phasewise across the country from September onwards.

Record company performance

It was a quarter of records for Bajaj Auto. The second quarter of the current year witnessed the highest-ever turnover of Rs. 2,909 crores, exports of 224,334 vehicles, operating profit of Rs. 603 crores and the record high net profit of Rs. 403 crores.

Profit earned for the quarter exceeded that during the first half of 2008-09, and profit earned for the half exceeded that earned during the full year.

HCV segment is usually the first to enter the recession and the last to come out of it – Ramakrishnan

The commercial vehicle, particularly the medium and heavy duty segment, is on its road to recovery, says Mr. R. Ramakrishnan, Head - Sales & Marketing, Commercial Vehicle Business Unit, Tata Motors.

Talking to Motorindia at the launch of of LPT 1102 truck in Chennai, Ramki (as he is known to many in the industry), said, “the HCV segment is usually the first to enter the recession and the last to come out of it. Over the past few months the M&HCV segment, which was in the red, has seen positive sales growth. In terms of cumulative sales we are still behind last year, but month on month we are narrowing the gap”.

The domestic CV industry registered a volume growth of 14.2 per cent during the second quarter of the current year, driven maonly by strong revival in industrial activities and cheaper finance. LCVs posted robust growth of 27 per cent y-o-y while on the other hand, the MHCV market recorded a decline marginally of (0.7) per cent during the quarter. The industry volumes in the MHCV truck segment declined by 10.5 per cent, while industry volumes in the LCV truck segment grew by 9.5 per cent during the quarter, driven mainly by the mini-truck segment.

Tata Motors’ Commercial vehicle business grew by 20.8 per cent, driven by a strong revival in the domestic industrial activities and cheaper finance availability. During the quarter (July-Sep’09), the company’s volume in M&HCV segment grew by 5.3 per cent, first time since Q1FY09. Also LCV continued to clock robust growth and grew by 33 per cent, driven by continued success of ACE platform and LCV trucks and buses.The overall CV market share stood at 65.5% for the quarter; up 350 bps from 62.0% in Q2FY09.

The recovery has been across all regions but in a phased manner. Ramki said, “Northern region was probably the first to recover has been doing well right from the beginning of the year. East has been fairly stable except for the iron ore segment, which has not done well. West has recovered in September and South is just beginning to show signs of recovery” .

In terms of the segments, it is the multi-axle trucks which started recovering first. The tractor trailer segment is recovering but sporadically, in different pockets. The recovery is on account of cement and automobiles, likes cars in particular. The Tractor Trailer segment continues to be affected because of the dull exports. Latest figures show that exports are down 30% so far. Imports have increased to an extent and that has positively impacted the Tractor Trailer segment, Ramki adds.

Buses

Tata Motors has had a terrific run in the bus segment so far. During Apr-Sep’09 Tata Motors gained substantial market share in the Bus segment mainly due to greater acceptance of ICV Marcopolo and Super Milo buses. Also, Tata Motors gained market-share in the private and STU bus segment. “The deliveries under the JNNURM project have started. We have an order book for 5000+ buses under the project and there is more expected”, says Ramki. On the luxury bus segment, the company offers the Hispano fully built bus. Tata Motors has sold close to 100 units so far.

World Truck

Prima, which is the brand name for the World truck series, was launched in May last. The company has started deliveries of some vehicles. “The initial response has been good but as we mentioned right at the beginning, we are going slow on the deliveries. We don’t want to generate numbers to begin with. We want people to experience this concept, see what it does to the business. It’s a culture change for not just the the buyer of the truck but also the driver. Even our own sales and service infrastructure need to gear up for handling these trucks. We are preparing all the stake holders”, Ramki said.
The Prima range includes Tractor-trailers, Rigid trucks, multi-axle trucks and tippers. “We will be gradually launching models as we go along and it will take atleast 18 months for us to reach a volume which is a representative figure in terms of sales in each segment”, Ramki said.

Through the World Truck, Tata Motors has demonstrated its intent to offer more fully built solutions. It has successfully achieved this in the bus and wants to replicate it in the truck segment as well.

“We would definitely like to move in the direction of fully built solutions as it helps the operator in many ways. It offers them better payloads; the vehicles are designed for better engineering and safety standards and therefore more reliable and durable. Most importantly the operator starts using the vehicle from day 1”, Ramki added.

Going forward,Ramki feels that in the second half of the year the growth momentum may pick up further due to factors such as lower base in the previous year, advance vehicle purchase prior to emission norm change and continuing strong economic activity.

Tata Motors launches feature-rich 1109 Ex2 trucks in Tamil Nadu

Tata Motors has reinforced its position in the truck segment with the launch of the Tata 1109 Ex2 trucks in Tamil Nadu. The automobile giant has always been a pioneer in offering innovative solutions to customers in the commercial vehicle industry. The Tata 1109 Ex2 is the next milestone in the company’s continuing efforts to service the diverse and growing requirements of the light trucks segment.

The Tata 1109 Ex2 is a convenient, comfortable vehicle offering which has been designed to offer additional payload of 600 kg (12,500 kg GVW). The vehicle comes with 4-cylinder turbo-charged inter-cooled engine, delivering 90 PS and maximum torque of 325 Nm. Further, it has been fitted with a stronger frame, power steering and clutch booster for easy drivability.

The other additional features include clear lens head lamps, fog lamps for better visibility, deluxe cabin with digital clock, and mobile charger. Further the vehicle comes with a best-in-class warranty of 18 months/1,50,000 km warranty and longer service interval @ 20,000 km.

Addressing a press conference on the occasion, Mr. R. Ramakrishnan, Head - Sales & Marketing, Commercial Vehicle Business Unit, said: “Ex2 represents a defined set of product improvements like power steering, clutch boosters, improvements in service intervals, etc., and we’re very pleased to launch our 1109 in its Ex2 avatar for our Chennai customers.”
Clearing a point raised by our Correspondent, Mr. Ramakrishnan said that the vehicle which was initially launched in Surat in September aroused high expectations both within the company and among customers. Currently, the all-India market size for the 11-tonner trucks is around 35,000 units, in which Tata Motors enjoys an appreciable share of 60 per cent. The company has increased its market share in the 11-tonner segment in Tamil Nadu even during the current recession, from 32 per cent to 47 per cent in the last one year. The ultimate aim is to achieve a 60 per cent market share in the State, where it has so far sold 350 11-tonner vehicles and hopes to raise the level to 700 units by March 2010.

Since the Bharat Stage III will be enforced in 14 cities with effect from April 1, 2010, the company is all set to upgrade the product range, Mr. Ramakrishnan added.

Mr. Anil Kapur, Head - Sales and Marketing - Small and Light Trucks, said: “The Tata 1109 Ex2 offers more payload which directly impacts a customer’s business growth. What’s more, the Ex2 features give the new 1109 a competitive features-to-price ratio which we believe will more than match our customers needs”.

Dividend paying strategy

According to Mr. Kapur, the strategy adopted by Tata Motors during the last one year has paid rich dividends. For example, even during the current recessionary market phase, the company has been able to make more investments on R&D and has turned out several new products. In recent months, it has launched new vehicles like ACE EX, a one-tonner Super ACE, and the SK 407 tipper which have evoked good market response. With its attractive heavy retail scheme, the company has also considerably reduced the inventory level.

In his address, Mr. K. Joghee, Head - Marketing - LCV and ICV Trucks, observed that the 1109 Ex2 vehicle comes with many ‘firsts’ to its credit, including power steering, clutch booster, clear lens headlamp, enhanced service interval, longer service interval @ 20,000 km, etc. With add-on features, the product would positively help the customers enhance their revenue. With reduced oil change, the operator can also save Rs. 10,000. The ex-showroom price of the vehicle has been competitively fixed at Rs. 8.85 lakhs, he added.

Tata Motors is India’s largest automobile company, with consolidated revenues of Rs. 70,938.85 crores ($14 billion) in 2008-09. Through subsidiaries and associate companies, it has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India.

With over four million Tata vehicles plying in India, Tata Motors is the country’s market leader in commercial vehicles and among the top three in passenger vehicles. It is also the world’s fourth largest truck manufacturer and the second largest bus manufacturer.

Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South-East Asia and South America.

Scania plans Indian bus market entry in 2010

Swedish commercial vehicle major Scania is planning to enter the Indian bus market in 2010. “We are now doing a feasibility study for launching our buses in the Indian market. The high-end segment is interesting for us, and we have a good product range to offer. We expect that sometime during the course of next year, we would’ve finalised our entry into India. India is a very important market, and we have to be there. However, we are not in a hurry at the moment”, said Mr. Martin Lindstedt, Executive Vice President, Frachise & Factory Sales, Scania.

Scania entered the Indian market in 2007 by launching tippers in partnership with L&T. The cabin and chassis are currently imported as completely built units (CBUs) and tippers are being added locally. The company has sold over 500 units in India till date.

Scania is now looking at the possibility of introducing on-road vehicles and setting up an assembly facility in India both for its truck and bus projects. “We are doing the feasibility study in close co-operation with L&T. Our partners will also need to decide whether it is their core competence”, he said.

As part of the feasibility study, Scania has imported a few bus chassis and has built bodies with a few bus body builders. These are exported to nearby markets like Bangladesh where Scania has secured orders for buses.

Globally Scania has very strong relationship with Irizar. In India, Irizar is already present with its JV with Ashok Leyland and the TVS Group. Does this offer an opportunity for Scania? “India with its fast development is an important market, and we will definitely be there in India at the right time”, Mr. Lindstedt added.

Temsa puts India plans on hold

Turkish bus major Temsa had announced its plans to enter the Indian bus market by 2010. But the plan has been put on hold in view of the global recession which has impacted the company’s business.

“India is an exciting country. There is a big potential for buses and coaches, and we definitely want to be in the Indian market. But we have to weather the crisis situation in our existing markets, and then when the time is right we will hopefully make our way into the Indian market”, said Mr. Omer Sozuktek, Business Development Director of Temsa Global.

Disclosing this at Busworld, Mr. Sozutek said that, despite recession in the European market, the company has done well and will maintain the same volumes this year as in the last in terms of exports to Europe. It is the domestic market in Turkey where Temsa has been very badly affected due to emission change regulations and appreciation of the currency.

The company unveiled a completely refreshing and new brand identity for the Temsa brand. “Hopefully by the beginning or the second half of 2010 we hope to see some recovery, and then we will be in a position to reconsider our decision of coming to India”, Mr. Sozutek said.

Temsa had conducted detailed feasibility studies in India with component manufacturers, fleet operators and transport corporations. It was also in discussion with a few partners in India for a possible joint venture. “JBM is definitely a strong candidate for becoming a JV partner in India, but we haven’t decided yet and we will see how things progress”, he added.

Temsa is a leading commercial vehicle manufacturer and distributor. It is part of Sabanci Holding, one of Turkey’s leading conglomerates.

Temsa global operates in three business fields: manufacturing and distribution of its bus & coach brand Temsa in Europe, Turkey, the Middle East, North Africa, the Gulf countries and North America; manufacturing and distribution of Mitsubishi FUSO light trucks in Turkey, Georgia, Kazakhstan and Azerbaijan, and of Mitsubishi passenger cars in Turkey; and distribution of Komatsu construction equipment in Turkey, Georgia, Azerbaijan and T.R.N.C.
Temsa’s global turnover in 2008 was $870 million, of which bus & coach exports alone accounted for $202 million. The company exports close to 75 per cent of the buses and coaches produced at Adana, more than 80 per cent of which are for Europe.

Temsa has currently nine models to offer in Europe: Diamond, Safari HD, Safari RD, Opalin, Tourmalin, Tourmalin IC, Metropol IC, Avenue LF (Diesel, CNG and Hybrid Diesel/Electric) and Avenue LE. The company sells its buses in over 46 countries.

ZF-Ecomat highly successful in India

In the course of an extensive government program, local public transport in India’s metropolises has been completely modernized. For modern bus fleets economy and reliability are important criteria – two characteristics, incorporated by ZF Chassis and Driveline Technology. Evidence provided through different applications at various Indian transport authorities and international fuel consumption tests.

For four years, Volvo India has exclusively installed automatic transmissions of the ZF Ecomat type in its city buses. The economical 6-speed automatic transmission convinced the vehicle manufacturer particularly through its superior reliability. Especially in public transport reduced downtimes are a highly important factor, that is quickly communicated: For this reason, Volvo is providing transport authorities in Bangalore, Chennai, and Pune with city buses of the B7R type by 2010. ZF Ecomat transmissions installed in these buses will provide reliable, economical, and comfortable drive solutions. All in all, Volvo, currently the only foreign bus manufacturer in the country, will use more than 700 vehicles for transport service in India’s metropolises and all of them are equipped with ZF Ecomat transmissions.
India’s local public transport is about to face a real paradigm shift: By pursuing the objectives put forward by the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), the emerging nation aims at significantly improving the quality of life in Indian metropolises, such as Delhi, Mumbai, and Kolkata. To this end, a modernized local public transport system shell make its contribution. Buses equipped with ZF Ecomat are most suitable.

The 6-speed automatic transmissions are already in service in numerous European metropolises where they offer both a high degree of driver and passenger comfort and high fuel economy at the same time. International fuel consumption tests confirm: By combining the transmission with TopoDyn, the intelligent shift strategy which was specifically developed for the Ecomat transmission, fuel consumption reductions of up to 19 percent are possible - compared to Ecomat transmissions without TopoDyn. TopoDyn is a software which collects information on the route’s topographic profile during travel and, in relation to this specific profile, selects the most economical shift strategy.

ZF Ecomat was specially designed for applications in city buses. With the high number of setting-off processes, city traffic is characterized by high fuel consumption. This does not apply to the Ecomat: By closing the torque converter lock-up clutch shortly after starting, the transmission saves additional fuel and provides better riding/driving comfort at the same time. Moreover, the integrated retarder allows wear-free braking which considerably reduces life cycle costs.

Not only ZF driveline technology that is used in India, but also ZF chassis technology has convinced Indian transport authorities. For this reason, more than 2,000 front axles of the RL 85 A type are installed in buses by Tata Motors, one of the largest bus manufacturers in India. Another 400 will be delivered before the end of 2009. Other Indian manufacturers have also filed inquiries.

In business since 2007, ZF India Pvt. Ltd. is primarily active in the bus sector, has four service locations for customer service / aftersales support. However, the ZF location in India is still in the process of being established: Since the beginning of 2009, ZF India has had four “flying doctors” to ensure further improved customer support also outside of the service centers.

Hanover Displays garners significant marketshare in India

Hanover Displays Ltd., the world’s leading manufacturer of electronic destination sign boards, was one of the early entrants in the Indian bus market. Today, the company commands a marketshare of over 70 per cent supplying to all major OEMs. In a recent interview to MOTORINDIA, Mr. Steve Colquhoun, Commercial Director, Hanover Displays said that he is confident of the future growth prospects in the Indian bus market.

Excerpts:

Question: Could you briefly outline the business operations of Hannover Displays (HD) at the global level and the products manufactured?

Answer: Hanover Displays is Europe’s leading manufacturer of electronic destination signs for public transportation industry. Established in 1985, the company has subsidiaries in France, Italy, Spain, Australia and the US with a worldwide service network.

Q: When did HD enter the Indian market and what are the products offered in India?

A: The company which entered the Indian market a little over five years ago was the first to introduce LED signs here. It offers daylight viewable LED destination signs, internal displays, controllers, voice announcement units, TFTs, bus shelter signs, etc., which generally constitute the Passenger Information System.

Q: How good is the business in India so far?

A: Since we were the first to introduce these signs, it took us two years or more of consistent efforts to start generating business. Since then, the business has picked up, as more and more STUs are going in for LED sign boards for use in city buses. They may subsequently be installed in inter-State buses also.

Q: Who are your major customers?

A: All the OEMs like Tata, Ashok Leyland, Volvo, Eicher, Swaraj Mazda, etc., and most of the leading bus body builders and domestic airlines have been already using our products.

Q: About the important achievement in the Indian market?

A: Within a span of five years we have gained a market share of more than 70 per cent. A service network has been established countrywide for 24/7 support to customers. The trouble-free products enjoy quick market acceptability.
Q: Currently you are working with an Indian partner. Are you importing the products or manufacturing them locally?

A: Except the popular LED PCB board, all the aggregates have been indigenised.

Q: Do you plan to have a full-fledged manufacturing facility in India, so as to be more competitive?

A: Other than the radial and SMD insertion, the entire operations are done at the Indian plant. This being the case, we have proved extremely competitive. After the current orders obtained under the JNNURM scheme are executed and if the demand continues, we could contemplate establishing a full-fledged manufacturing facility in India. As of now, over 2,500 buses have been equipped with our systems.

Q: The JNNURM order has been a big boost to the city bus segment in India. What is your share of business?

A: Our share exceeds 60 per cent. Our products are better rated for intensity and visibility. With an offer of 10-year warranty, the products are known for their trouble-free performance.

Q: Apart from the bus market, which are the other segments you are targeting? Is rail a special focus area for HD?

A: As of now we are focused on the bus market and may soon start offering bus shelter and bus terminal signs. Metro trains is an area of interest, though the volumes do not yet justify our getting into this segment.

Q: What is your perception of the Indian market and what are future plans for the market?

A: Brighter prospects. With the expanding infrastructure and enhanced connectivity across the country, buses would be the lifeline for general commuters. With the Tier 2 cities also gearing up for business expansion, overnight executive travel will attract greater attention. Added to this is the Government initiative to introduce BRT and more buses to reduce traffic congestion. All this will give a big boost to the already growing bus market.

Daimler retains leadership in global bus business

For 2009 as a whole, Daimler Buses forecasts that worldwide demand for buses of over eight tons GVW will fall from more than 280,000 to about 248,000 units, whereby crucial core markets are expected to stabilize, however. With this data in mind, Hartmut Schick said: “We are sure to still be the undisputed market leader at the end of the year. And we will further increase our market share as we did in the first half of 2009. Altogether we will remain profitable and fully utilize our plants all over Europe until the end of the year.”

With a market share of 15 per cent in the first half of the year, Daimler Buses is once again underscoring its leading position in the international bus business. During the period, Daimler Buses sold 15,112 Mercedes-Benz, Setra and Orion brand buses and chassis worldwide (January-June 2008: 20,243). During this period the unit posted revenues of slightly more than Euro 2 billion (January-June 2008: Euro 2.24 billion), while its EBIT amounted to Euro 114 million (Euro 245 million).

“Despite a challenging economy, we maintained our position as the world market leader and even gained market shares in some regions. This shows the Daimler Buses business system is very stable. The profitability comes to an operating margin of 6%. We can therefore look forward to the coming months with confidence,” said Hartmut Schick, Head of Daimler Buses at a press conference during the run-up to the Busworld event at Kortrijk.

In the first half of 2009 sales on the international bus market declined worldwide. The impact of this development also was felt by Daimler Buses, even if its declines were much smaller than those on the overall market. On the key German domestic market as well as in Spain, Italy and France, Daimler Buses successfully bucked the trend and gained market shares. In Brazil the market share has been defended, while in Mexico the market share was enhanced by 10 basis points. With its market share of 60 per cent Daimler Buses continues to be the market leader by a wide margin. On the overall declining North American market, the company generated considerable growth in sales (+17 per cent).

Major contracts won were one reason why Daimler Buses succeeded in securing the market shares. The two most recent major contracts are with customers in the Netherlands: 350 Mercedes-Benz Citaro urban and inter-city buses are to be delivered to the public transportation company Qbuzz, while 75 Citaros with natural gas drive systems have been ordered for the Arnhem-Nijmegen region. And in Berlin the public transportation company is expanding its bus fleet with 144 Mercedes-Benz Citaro urban buses.

With the official ceremony to mark the delivery of the 25,000th Citaro to a customer, the vehicle is the best-selling urban bus ever built. The municipal transportation company of Tashkent (Uzbekistan) ordered 200 Mercedes-Benz Conectos for city service.

Daimler Buses won other major contracts in South Africa, where more than 125 Mercedes-Benz feeder buses will be delivered for the Gautrain rapid transit project. Daimler Buses North America recently received orders for more than 300 regular-service buses, travel coaches, and shuttle buses. And from Chile it received an order for 700 chassis, the largest so far in 2009.

Sustained success will be possible thanks to Daimler Buses’ strategic approach, which encompasses the four core objectives of Operational Excellence/Efficiency, Growth in Existing Markets, Growth in New Markets, and Technological Leadership. “We are continuously working on improving our core processes, cost structures, and sales strategy,” said Schick. “This means, for example, that we are making our European production network even more flexible and doing all we can to fulfill our customers’ wishes with even greater precision and customization.” In addition, Daimler Buses will forge ahead with the development of new products. This includes development of the new Euro 6-compliant generation of engines and the focus on alternative drive technologies such as diesel-electric and fuel cell hybrids. And there will be even greater cooperation with local partners, for instance in India, Russia and China.

“Coach of the Year 2010”

The European bus and coach jury at this year’s Busworld has crowned the Mercedes-Benz Travego, currently available since the beginning of 2009 in its third generation, “Coach of the Year 2010”. The trophy was awarded by Stuart Jones, President of the Coach of the Year jury, to Michael Göpfarth, Manager of the Mercedes-Benz Bus and Coach Unit of EvoBus GmbH, on October 15.

The Travego emerged victorious after the jury of experts from 17 European countries put the Travego through its paces against four other European competitors at the Coach Euro Test in June 2009 in Senlis, Paris.

The Coach Euro Test takes place every two years and is one of the most important coach tests in the bus and coach sector, scrutinizing such criteria as economic efficiency, environmental acceptability, handling and comfort - and of course not forgetting the top priority, safety.

India Day celebrations at Busworld

It was a moment of pride for all Indians as Busworld celebrated India Day at Kortrijk. A seminar was organised on “Opportunities in Indian Bus Industry.” The speakers included Mr. K.S. Wilkhu, Director, Sutlej Motors Ltd. and President, Indian Association of Bus Manufacturers, Mr. Balraj Bhanot, Chairman, TEDC, and Adviser DIMTS, and Mr. S.S. Sandhu, Head of Department - Vehicle Evaluation Lab, ARAI.
Mr. Bhanot made a detailed presentation on the new accredition systems for bus body builders. Mr. Wilkhu made his presentation on the overall bus market in India and the future growth opportunities for international bus and coach manufacturers as well as for component manufacturers for bringing in new technologies. Mr. Sandhu dwelt on the new code for bus bodybuilding.

At the Busworld inaugural ceremony Mr. K.S. Wilkhu signed an MoU on behalf of the Indian Association of Bus Manufacturers with the organisers of Busworld and the Indian partner Interads, which aimed at putting in place a greater level of co-operating among the three entities.

Mobitec establishes strong presence in Indian market

Within its existence since more than 20 years Mobitec (NASDAQ: TBUS) has perfected the electronic information displays used on buses and has become the world market leader in the design and manufacture for mobile passenger information systems in buses and rail transport vehicles. Mobitec has announced its design to continue shaping the industry of passenger information systems encompassing additional areas of public transportation to provide superior product and services for global passengers on their ground travel.

Together with Twin Vision na. Inc., a subsidiary of DRI Corporation and a Mobitec US sister company, the company has been setting standards in the development for new technologies for usage on vehicles in public transport.

As one of the pioneers in the field of electronic information displays engineering Mobitec employees, driven by their customers demand, feel inspired and obliged to continue this tradition adding products and services with groundbreaking technologies and high quality.

“Our philosophy is clear”, stated Mr. Oliver Wels, VP DRI and COO, Mobitec Group. “We give our best for customers who expect the best, and we live a culture of excellence in all we do that is based on shared values. The corporate history of our organization is full of innovations and pioneering global market presence; they are the foundation and ongoing stimulus for our claim to leadership in the public transportation industry.”

Mr. Wels further commented: “The principle of sustainable technology enhancing mobility within the public transportation industry underlies all of our thoughts and actions. The people in our organization intend to create beneficial value – for our shareholders, customers, all business associates and the environment in general. We have seen the markets for public transportation growing for the last 20 years – driven by higher fuel prices, general economical instability (in many other businesses than public transport), resulting in increases in ridership in many areas. That has led us growing our EIDS (Electronic Information Display Systems) line of business being present in more than 50 countries worldwide to support our customers in a superior way and to anticipate future demands making available new efficient technologies first”.
Mobitec products are used in more than 50 countries today. “Our customers are benefiting from our unique service and distribution network, which comprises 38 official distributors supporting products made in four facilities located in the US, Brazil, Sweden and India. Especially India – as the world’s fastest growing market for buses used in public transportation – has emerged being very demanding. Our long experience in the global market environments has been very beneficial for our new customers, which today we serve from our modern factory in New Delhi.”

Castmaster Mobitec India Pty. Ltd., a joint venture between Castmaster and Mobitec, started as local service and customer support center for India two years ago, today operates a 20,000 square feet factory with an annual manufacturing capacity of 20,000 bus sets (LED signs, interior signs, GPS-enabled control units, acoustical voice announcement systems, cabling and bracketry).

Castmaster Mobitec is prepared to serve customers’ demands through a newly-developed set of LED signs, especially made for the Indian market environment and 24/7 service support.

Mr. Rahul Jain, Director of Castmaster Mobitec, said: “At Mobitec safety is grounded on expertise and success comes from experience. This combination of expertise and experience is a corporate attitude which our customers understand and appreciate. We can see our customers being confident in concentrating on their core business, knowing they can leave their concerns of supplying their mobile passenger information systems to us.”

Castmaster Mobitec started with its first order for 650 buses to DTC, and today it has an order book for 7,000 sets, thanks to the JNNURM order funded by the Government aimed at improving the standards of public transportation. The company has developed a product specifically to meet the requirement of the Indian market. The product has been indigenized to a large extent and will see further local added value over a period to come. The company has established an efficient supply base in India.
The Indian JV currently employs 25 people and this will be raised to 40 by mid-2010. It has bagged orders from all major OEMs including Tata Motors, Ashok Leyland and Volvo-Eicher. “We are possibly the only supplier to guarantee deliveries in the shortest possible time. In the last one year, we have emerged as the global leader in manufacture and supply of electronic signs,” said Mr. Wels.

Mobitec’s display systems each contain MobiLED front, side and rear displays. Furthermore, MobiSTOP, the internal display for showing the next stop, and the digital announcement system MobiVOICE, including the control unit MobiMASTER ICU 600 with a GPS module, will be fitted.

“One of the important learnings for us is we never believed that such a competitive cost level can be achieved before we entered in India. We are taking the Indian knowledge and learnings into the rest of the organization. We are on our way to becoming the most efficient producer of Electronic Information Display Systems in the Industry through the highest leverage of global volumes. Our plan is to establish our Indian operations potentially becoming the base for export other markets in Asia-Pacific”, Mr. Wels added.

Currently Mobitec is the global leader in the bus segment and the company plans to become and major player in the rail segment. India offers huge opportunity in the rail segment with the upcoming Metro projects and expansion of railways.

In just a matter of two years, Mobitec has established very strong presence in India. The company has entered India at the right time, offering the highest technology and best-in-class quality products. Indian market is just opening up for these products and solutions and there is no doubt that Mobitec has a great opportunity ahead in India.

APSRTC acquires Mercedes-Benz luxury buses

The Andhra Pradesh State Road Transport Corporation (APSRTC) has inducted Mercedes-Benz buses in its fleet: Mr. V. Dinesh Reddy, IPS, Vice-Chairman & M.D., APSRTC was handed-over the keys of APSRTC’s first Mercedes-Benz Luxury coach by Dr. Wilfried Aulbur, Managing Director and CEO of Mercedes-Benz India Ltd.

“We at APSRTC constantly endeavour to provide our customers the best in terms of luxury, comfort, safety & technology. Thus, Mercedes-Benz buses emerged as an obvious choice for us. Now our customers can truly experience unmatched comfort and luxury in their bus travel”; commented Mr. Reddy.

Dr. Wilfried Aulbur said: “The Mercedes-Benz Bus stands for the latest and best of technology, design, comfort, reliability and performance- aspects that have received enthusiastic response from our customers. We are happy to establish APSRTC to enable customers to experience luxury travel in Mercedes-Benz style. Our buses have been utilized and well appreciated by government organizations like MSRTC and KSRTC who have been impressed with the comfort & safety, overall cost of operation and robustness of our products. We are confident that APSRTC will also see value of the Mercedes-Benz bus in their fleet.”

The Mercedes-Benz buses offered to APSRTC are built on the robust Mercedes chassis- 0 500 / RF 1830. These buses have been designed to suit the needs of APSRTC. Apart from the suave exteriors, the plush and airy interiors sport well designed passenger seats with amenities like personalised speakers, lights and AC controls. Also, the bus features state–of–the–art suspension of legendary Mercedes quality. All in all, the coach offers the highest standards of comfort, safety and reliability for users; at the same time the technology and efficient performance ensures optimum cost of running for APSRTC.
APSRTC has been certified by the Guinness World Records for being the largest bus operator in the world. On an average, this STU transports about 14 million passengers every day, equalling the number of passengers ferried by Indian Railways. It is the world’s largest public transport organization by bus fleet (Total number of buses – 21,335) offering a wide array of transportation services in the Southern states of India. Currently,

APSRTC operates across the states of Andhra Pradesh, Tamil Nadu, Karnataka, Pondichery, Maharashtra, Orissa, Chattisgarh and Goa. It also operates city services in Hyderabad, Secunderabad, Vijayawada, Vishakhapatnam, Tirupati and Warangal.

Talking about the Indian bus market, Dr. Aulbur observed: “The bus market in India is witnessing a tremendous change – a revolution aided by government driven infrastructure projects which are dedicated to redefine the mass transportation industry in India. Large scale projects like the NSEW corridor and the Golden Quadrilateral are already underway and close to completion. As links between far-flung places strengthen, there is an increased demand for mass transit systems to move the people with solutions that are reliabile, robust, and passenger oriented. It is this need that the Mercedes-Benz buses will fulfill.”

Mercedes-Benz launched its inter-city luxury coaches in September 2008 and till date has sold 25 buses in India. Mercedes-Benz coaches have been sold to private operators like Neeta Tours, Sharma Transports, Konduskar Travels, Kaleshwari Travels, Eagle Travels and SS Travels.

Tata Motors delivers 130 low-floor buses to DTC

Tata Motors recently delivered 130 ultra low entry (ULE) buses to the Delhi Transport Corporation (DTC) and will supply 5,000 buses to various transport bodies across the country within the next six months as part of the JNNURM programme.

"We will be delivering around 2,000 buses to DTC during the rest of the fiscal, of which 40 per cent would be AC and the rest non-AC. Besides, we have already started delivery of buses under the JNNURM contract to various state and local bodies and we will deliver 5,000 such buses this fiscal," Mr Pisharody said.

Media reports also indicate that Tata Motors is working on Hybrid bus, which will be launched in the Indian market next year. The hybrid model will be CNG plus electric or gasoline plus electric.

Acquisition of Hispano complete
Tata Motors, which had a 21 per cent stake in Hispano Carrocera S.A., Spain, since 2005, has acquired the remaining 79 per cent shares in it by exercising the existing call option, through mutual agreement with the other shareholder, Investalia S.A. This acquisition demonstrates Tata Motors’ ongoing commitment to Hispano Carrocera.

After the acquisition, Tata Motors will further strengthen the ongoing initiatives to improve operational efficiencies such as productivity improvement, cost reduction and new product development, to improve the market share of the company and enhance brand value. The company is confident that Hispano will now emerge as an even stronger force in the Spanish as well as global bus and coach markets.